Man Arrested for Student Loan Fraud

The United States Attorney's Office announced that a Grand Jury sitting in Hammond, Indiana, previously returned the following indictment:

NAMON ARNOLD, age 44, who was the owner and operator of the Hammond Academy
of Beauty, located in Hammond, Indiana, has been charged with obtaining Pell Grant funds by
fraud beginning in December 1992 and continuing until June 1997. Additionally, he was
charged with several counts of money laundering as it is alleged he took steps to hide and
conceal this source of illegitimate funds. Mr. Arnold was arrested on October 10, 2001 and the
indictment was unsealed. Statutory maximum sentence upon conviction for this indictment is
115 years. This charge was filed as the result of an investigation by the United States
Department of Education, the Internal Revenue Service, and the United States Postal Inspection
Service. This case has been assigned to and will be prosecuted by Assistant United States
Attorney Jonathan L. Marks, who can be reached at 219-322-8576 for any inquiries.

The United States Attorney's Office emphasized that an indictment is merely an allegation
and that all persons charged are presumed innocent until and unless proven guilty in court.